Air Time Purchase Agreement by fgb99291

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     By: Public Employees Retirement Association
                                 of New Mexico
      PERA Pension Plans
State Division

Municipal Division

Judicial

Magistrate

Legislative

Volunteer Firefighter

Disability (all divisions except Volunteer Firefighter)
     Public Employees Retirement Association of New Mexico
           Vesting and Account Options

Vesting
5 or more years of employment with a PERA affiliate. ERA service does
not count toward vesting but does count toward the requirements for
                             TEXT
retiring.
                                            TEXT
           TEXT
Options for your Contributions at Termination*
 Receive member contributions and interest as a cash refund, or
 Rollover contributions into an IRA, or
 PartialTEXT / partial cash refund, or
          rollover
 Leave contributions on deposit for deferred retirement.
                          TEXT


* Employer contributions are never available for refund, even
  after you are vested.

          Public Employees Retirement Association of New Mexico
                        Reciprocity
 Service credit earned under the different retirement plans in New Mexico may be used to count
    toward retirement eligibility. Even though you are using service credit from other plans
    (Educational Retirement Act (ERA), the Judicial Retirement Act (JRA) or the Magistrate
    Retirement Act (MRA)), the service credit you earned under each plan will be calculated using the
    formula for that plan and you may not receive your whole pension amount at the time of
    retirement. When you qualify to receive the reciprocal portion, you will see the increase reflected
    in your pension check.
   When you are retiring with reciprocity service, you retire under the plan of your last employer. So
    if you worked for an ERA employer in the past and now you are working for a PERA employer,
    you would be retiring with PERA.
   Whenever you contact PERA to review your account or provide a calculation for retirement or the
    purchase of service credit, it is important to notify PERA of all the service credit you may
    have. This will allow PERA to contact ERA to verify your service credit and include your ERA
    service credit in all the calculations.
   If you have service credit under more than one PERA coverage plan or under ERA, JRA or MRA,
    you should be aware that different provisions regarding service credit apply. Subject to certain
    statutory restrictions, the Act allows PERA members to use service earned under ERA, JRA and
    MRA as well as that earned under PERA in determining retirement eligibility and calculating
    pension benefits. Any PERA member who was employed under two or more of these Acts should
    contact PERA to determine his or her eligibility for reciprocal service credit under this Act.



                                                                                                      4
        Earning Service Credit

Service – The years and months (service credit) you have worked to
qualify for a PERA pension.
                           TEXT
Hire Date – Hired on or before the 16 of the month, you should get
service credit for the month              TEXT
        TEXT
Termination Date – Termination on or after the 15 of the month you
should get credit for the month

Salary Earnings - You must earn at least half of your salary every
      TEXT
month to earn service credit for that month. Also, you must work at
                      TEXT
least 80 hours in a month to earn service credit for that month.




       Public Employees Retirement Association of New Mexico
                    Type of Service Credit

                                               Prior                Free
     Withdrawn            Military           Affiliation           Military



Time in the past      Non-                  Service with an      Intervening –
where you             intervening –         employer where
withdrew your                               you worked           Time as a
member                Active military       before the           reservist when
contributions and     service you           employer became      you were called
forfeited the         have when you         affiliated with      into active
corresponding         enlisted into         PERA. A member       military service
service credit.       the military. A       must be vested in    while working
                      member must           order to purchase    for a PERA-
                      be vested in          Prior Affiliation    affiliated
                      order to              Service Credit.      employer.
                      purchase
                      Military Service
                      Credit.



                Public Employees Retirement Association of New Mexico
                       Purchase Formula for Permissive Service

Examples of the two most common types permissive service are:
        Military service
        Service with a new PERA affiliated-employer (Prior Service)

                                             TEXT
   Example cost calculation for permissive service:
       Member works under State Plan 3
                   Employee Contribution Rate          8.92%    TEXT
                   Employer Contribution Rate         15.09%
                     TEXT
                   *Average Monthly Salary            $1,800

        Employee contribution rate X average monthly salary*
                   8.92% x $1,800 = $160.56
        Employer contribution rate X average monthly salary*
                   15.09% x $1,800 $271.62
                 TEXT = $432.18=the cost per month of permissive service credit
        $160.56 + $271.62
                                        TEXT
   The member is responsible for paying to PERA the employer and employee contribution portions.

   * Average Monthly Salary is the average of the highest 36
   consecutive months of reported earnings to PERA.


                     Public Employees Retirement Association of New Mexico
                 Air Time and Co-op

                          How                 How                Anyone
    When?                 Much?               Long?               Else?



Vested PERA         PERA members          The purchase       Effective July 1,
members are         vested with 5 or      agreement is       2007 Magistrate
                    more years of
able to             service credit can
                                          good for 60 days   and Judicial
purchase Air        purchase up to 12     from when the      members who
Time / Co-op        months of air time    member is          are vested under
service credit      or 60 months of co-   informed of the    their respective
not associated      op service.           cost.              acts, may
with any hours                                               purchase up to
worked for a        Air time and co-op                       12 months of air
PERA                may be purchased                         time service
employer.           at one time or in                        credit.
                    monthly
                    increments, any
                    time prior to
                    retirement.



             Public Employees Retirement Association of New Mexico
                                 Purchase Examples for Air Time or Co-Op

The following are 3 examples of the cost to purchase “Air Time”/ Co-op service credit using different
ages and different retirement plans.
Date of Estimate           August 2, 2008                        Date of Estimate          August 2, 2008
Date of Birth              July 1, 1973                          Date of Birth             May 17, 1963
Hourly Rate of Pay          $12.50                               Hourly Rate of Pay        $18.50
Months of Credited Service 60 months / 5.0 years     TEXT        Months of Credited Service 228 months / 19.0 years
Retirement Coverage Plan State General Plan 3                    Retirement Coverage Plan Municipal Police Plan 5
                                                                          TEXT
Cost per Month of Air Time     $641.84                           Cost per Month of Air Time       $1,837.61
                             TEXT
Cost for 12 Months of Air Time $7,702.11                         Cost for 12 Months of Air Time   $22,051.35

Date of Estimate           August 2, 2008
Date of Birth              September 15, 1958
Hourly Rate of Pay         $21.00
Months of Credited Service 216 months / 18.0 years
Retirement Coverage Plan Municipal Plan 3
                        TEXT
Cost per Month of Air Time       $1,771.49      TEXT
Cost for 12 Months of Air Time   $21,257.84

If you are interested in an estimate of the cost for “Air Time,” service credit you may call PERA and provide your
birth date and hourly rate of pay to a customer service representative, who can give a cost estimate over the
phone. To request a purchase agreement for “Air Time,” please send a written request to PERA and provide a
copy of your last pay stub and date of birth. For co-op service purchase, please provide school transcripts and
information from your employer for the work phases.
PERA Request Forms are available on-line at www.pera.state.nm.us.

                           Public Employees Retirement Association of New Mexico
               Retirement Types

Normal Retirement
                         Deferred Pension             Disability Pension
    Pension


    Working until           Stopping work after      * Duty – becoming
    you qualify to          you have vested and        sick or injured
    retire with age            leaving your employee    because of your job
    and service.                 contributions on
                                  account until you        * Non-duty –
                                  reach age and            becoming sick or
                                service requirements      injured not related
                              then applying
                                                         to your job.
                             for your pension.




              Public Employees Retirement Association of New Mexico
                 Disability Retirement

                                                         When to apply for a
  Eligibility                     Benefits
                                                         Disability Retirement


Duty:                         Disability benefits  * Apply while still
eligible from the first        will be calculated    employed, the
 day of employment              using the terms of   criteria is can you
                                                       do your job.
     Non-duty:                    the member’s
    member must be                coverage plan.        * Apply after your
    vested (have 5               Members have the       have terminated
   years of PERA               right to appeal the    your employment,
  service) to apply           denial of a claim.     the criteria is can
                                                    you do any job.



                Public Employees Retirement Association of New Mexico
                               Retirement Plans and their Pension Factors
                                                                                   3.5% Pension
                                     2.0% Pension   2.5% Pension    3.0% Pension
                                                                                   Factor (20 Year
                                        Factor         Factor          Factor
                                                                                       Plans)

          State Plan 1
       Municipal Plan 1
     Municipal Police Plan 1
      Municipal Fire Plan 1
                                        
          State Plan 2
       Municipal Plan 2
     Municipal Police Plan 2
      Municipal Fire Plan 2
                                                       
                                                       
     Municipal Police Plan 3
      Municipal Fire Plan 3
  State Hazardous Duty Plan 1

          State Plan 3
  State Hazardous Duty Plan 2
State Police & Adult Corr. Plan 1
        Municipal Plan 3
Municipal Detention Officer Plan 1
                                                                       
Municipal Police and Fire Plans 4

     Municipal Police Plan 5
      Municipal Fire Plan 5
                                                                                      
                           Public Employees Retirement Association of New Mexico
                                   Age and Service Requirements
                                                                                         3.5% Pension
                                    2.0% Pension      2.5% Pension      3.0% Pension
                                                                                         Factor (20 Year
                                       Factor            Factor            Factor
                                                                                             Plans)

 Any age with 25 or more years
      of service credit, or            50%              62.5%              75%
  Age 60 or older with 20 or
more years of service credit, or       40%               50%               60%               70%
  Age 61 or older with 17 or
more years of service credit, or       34%              42.5%              51%             59.5%
  Age 62 or older with 14 or
more years of service credit, or       28%               35%               42%               49%
  Age 63 or older with 11 or
more years of service credit, or       22%              27.5%              33%               38%
 Age 64 or older with 8 or more
   years of service credit, or         16%               20%               24%               28%

 Age 65 or older with 5 or more
    years of service credit.           10%              12.5%              15%              17.5%

Legislators, judges, magistrates and volunteer firefighters have different age and service requirements
as well as benefit calculation provisions.
                               Public Employees Retirement Association of New Mexico
                          Retirees Returning to Work for a PERA Employer

    Beginning January 1, 2007, PERA affiliates who re-employ PERA retirees became responsible for paying both the employee and
employer contribution amounts on salaries earned by the re-employed retirees. This includes retirees who were previously employed and
are already on payroll.

Exclusions
The ONLY retirees who are excluded from the provisions of retirees returning to work are:
      •Chiefs of police;
      •Undersheriffs;
      •Elected officials;
      •Senior Citizens in a federal or state-funded training program administered by NM Aging & Long Term Service Department;
      •Retirees hired to work for the legislature during legislative sessions; and
      •Retirees from the Educational Retirement Board.

PERA affiliates must make employer and employee contributions on behalf of ALL OTHER retirees. This includes a retiree who is hired as
a temporary or part-time employee and includes retired elected officials returning to work in any capacity. No other exclusions are permitted,
such as for exempt employees. A retiree who returns to work as an independent contractor is excluded from membership

Different rules apply to retired judges and magistrates. A judge retiring under the Judicial Retirement Act or magistrate retiring under the
Magistrate Retirement Act will have his or her pension suspended if he or she returns to work for a PERA affiliate. The retired judge’s or
magistrate’s pension resumes when they terminate employment with a PERA affiliate.

90-Day Break in Service Still Applies
The statutory provision that retirees must not be employed by a PERA-affiliated employer for 90 consecutive days from his or her retirement
date before being eligible to return to work for a PERA affiliate still applies.

If a retire returns to work with a PERA-affiliated employer before the 90-day waiting period elapses, the retiree must remove him or herself
from retirement. The retiree will then become an employee and makes PERA contributions. Any pension amounts received must be paid
back to the fund. The employee must apply for re-retirement at the end of his or her employment to begin receiving a pension.

Reporting Forms
An Application for a Re-employed PERA Retiree is to be used effective January 1, 2007. A Termination Notice for a Re-employed
PERA Retiree is to be used upon termination from employment. The termination notice will allow PERA to track employment of re-
employed retirees and verify that contributions have been made.
                           Public Employees Retirement Association of New Mexico
                       Information Sources
                                   Where Do I Go?



                                          Santa Fe                        Albuquerque
         Website /                        Office                          Office
         Email


www.pera.state.nm.us                  (mailing address)                2500 Louisiana Blvd. N.E.,
pera-memberservices@state.nm.us       P. O. Box 2123                   Suite 420,
                                      Santa Fe, NM 87504-2123          Albuquerque, NM 87110
                                      (physical address)
                                                                       (505) 883-4503 voice
                                      33 Plaza La Prensa
                                      Santa Fe, NM 87507
                                                                       (505) 883-4573 fax
                                      1-800-342-3422 or
                                      in Santa Fe 476-9300
                                      (505) 476-9401 Fax

                      Public Employees Retirement Association of New Mexico

								
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